Buying a car or bike? Financing could be the smarter choice, Here’s why

Thinking of buying a car or bike? Even if you have the cash, consider financing. There's a smart logic behind it.

Why finance even with cash on hand?

Some save, others finance. Even with cash, many finance. It seems wasteful, but financing helps keep your financial plans on track.

10-20% down payment is enough

Even with enough cash, a 10-20% down payment is sufficient for a car or bike. Banks and finance companies cover the rest. Compare interest rates before borrowing.

Why finance even with cash?

Using all your savings for a vehicle leaves you vulnerable in emergencies. Financing is a safer option, allowing you to keep some savings aside.

Benefits of Financing

Financing protects your emergency fund. Interest isn't a huge burden with manageable monthly payments. Startups may offer lower interest rates. Smaller EMIs make payments easier. Financing offers more advantages.

Know Before You Buy

Before buying, understand finance options, interest rates, processing fees, late payment charges, prepayment and pre-closure charges, and company terms. Compare and make an informed decision.